Taking the financial pulse of US pet players

August is a busy financial month, with some major US pet players releasing their performance results. Let’s take a look. 

Rover

Online pet care marketplace Rover reported a Q2 revenue of $58.5 million (€‎53.4M), 35% up from the $43.4 million (€‎39.6M) generated during the same period in 2022. 

The Seattle-based company achieved 1.7 million dog sitter and walker bookings through its platform during the quarter. Repeat customers grew by 23%, reaching 1.5 million in 2023. 

The trend of increased bookings continues along the positive incline experienced in Q1. CEO and Co-Founder Aaron Easterly says the development is due to “product improvements and expanded marketing efforts.” Easterly also highlights that the company’s European markets are showing “inspiring” progress.

Rover has raised its outlook for the rest of the year based on its strong performance. The company anticipates revenue to range between $222–$227 million (€‎202.8M–€‎207.7M), a 29% year-over-year increase.

Trupanion 

Seattle-based pet insurance company Trupanion brought in $526.9M (€479.7M) in revenue in the first half of 2023, up 24% from $425.4M (€387.3M) during the same period in 2022.

By the end of Q2, the company recorded $270.6 million (€‎247.3M) in total revenue, an increase of 23%.

Trupanion’s customer base increased by 25%, with 1.68 million pets enrolled as of 30 June 2023, compared to the 1.35 million pets on their books at the end of Q2 2022.

At the end of Q2, the company reports that each enrolled pet brings in a monthly average revenue of $64.41 (€‎58.85).

Wag!

Pet care platform Wag! has reported its highest-service revenue quarter to date in Q2 2023, with revenue increasing by 55% to $19.8 million (€18M), compared to $12.8 million (€11.6M) in 2022. 

Wellness revenue was the company’s biggest contributor at $12 million (€10.9M)

“While there are some general macro uncertainties, this year of efficiency has positioned the business to drive profitable growth in the future,” says Chief Financial Officer Alec Davidian.

While Wag! maintains its revenue outlook for 2023 to fall between $80–$84 million (€72.8M–€76.5M), it has increased expectations for Q3 revenue in the range of $19–$20 million (€17.3M–€18.2M), a year-over-year increase of 27% at the midpoint of the range.

The company also announced its international expansion to Canada through Petted International, a pet insurance comparison player Wag! acquired in 2022.

BARK

New York-based dog-centric e-commerce company BARK concluded the first quarter of its fiscal year (FY) 2024 with a decline in both revenue and profit. 

In the quarter ending 30 June, revenue slid to $120.6 million (€‎109.9M), down from $131.2 million (€‎119.5M) in the same period last year. The company highlighted that the figure is “broadly in-line with the low-end of the BARK’s guidance range.”

Negative numbers continue when looking at BARK’s gross profit, which was recorded at $73 million (€‎66.5M), a $2.8 million (€‎2.5M) decrease compared to last year. 

CEO Matt Meeker says the company is continuing its expansion efforts into categories like consumables, as announced at the end of FY23. 

BARK reports that its advertising and marketing expenses have increased this year, from $16.4 million (€‎14.9M) in 2022 to $17.6 million (€‎16M) this year. 

Net loss has reduced in the 3 months ending June 2023, with a total of $11.7 million (€‎10.6M), compared to $15.4 million (€‎14M) in 2022.

The company predicts Q2 of FY2024’s total revenue to fall between $123–$127 million (€‎112M–€‎115.7M). 

Before the earnings release, BARK’S stocks decreased by 0.71%. InvestorsObserver notes that the company’s stock has traded “less bullishly over the last month.”

Freshpet 

New Jersey-headquartered pet food manufacturer Freshpet posted net sales of $183.3 million (€‎166.9M) in the second quarter of 2022, an increase of 25.6%.

Gross profit was higher this year at $110 million (€‎100.1M), with $95.8 million (€‎87.2M) over the first 6 months of 2022.

Net sales fell close to some analysts’ expectations, with market intelligence firm S&P Capital IQ predicting revenue for the quarter to be $184.7 million (€168.1M).

A positive trend in the company’s quarterly net loss was also at the forefront of the report, as the figure fell from $20.6 million (€‎18.7M) last year to $17 million (€‎15.4M) this year. This was partly due to the contribution profit from higher sales. 

Gross profit also noted an incline totaling $59.2 million (€‎53.9M). Last year, Q2 recorded $51.1 million (€‎46.5M). 

CEO Billy Cyr says the business has “real momentum,” noting both strong volume and net sales growth.

Net sales for the first 6 months of the year went up by 26.1% to $350.9 million (€‎319.5M), whereas last year, the company reported $278.2 million (€‎253.3M). This was driven by “both velocity gains and higher pricing.”

Freshpet is sticking with its initial guidance for net sales of approximately $750 million (€‎682.8M) in 2023.

Zoetis

Pharmaceutical company Zoetis’ companion animal revenue reached $1.49 billion (€1.36B) by the end of Q2, up 9% from last year. The US accounted for most of its sales in the quarter at $959 million (€873.4M).

Kristin Peck, CEO of Zoetis, highlights that the company expects “continued strong growth in the second half, led by our companion animal portfolio.” 

Brazil was the largest contributor to Zoetis’ international market with $91.5 million (€83.3M), whereas Spain was at the lower end of the scale with $30.9 million (€28.1M).

Simparica Trio, a parasite preventative treatment for dogs, was the main revenue earner with $248 million (€225.8M), an increase of 5% against the same period in 2022. 

The company’s dog and cat flea and tick medication, Revolution, ranked second with $103 million (€93.8M) in the US, marking an 18% increase.